COGS (Cost of Goods Sold)
What a unit costs you landed, manufacturing, inbound freight, duties and prep, before Amazon takes anything.
Why it matters
Landed COGS is the number every profitability calculation on Amazon rests on. Brands that model on ex-works factory cost and forget freight, duty and prep consistently overestimate margin, and therefore overestimate how much ACOS they can afford.
In practice
Include everything that gets a sellable unit into Amazon's network: unit cost, inbound freight, customs and duty, prep and labeling, and any inspection cost. Recalculate whenever freight rates or tariffs move, because both have moved a great deal in recent years.
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